“Case: Tianjin Plastics” Vrije Universiteit Amsterdam Course Advanced Corporate Finance Students Fatin Azear Jos Kusters Maaike van der Steen Case: Tianjin Plastics This assignment considers the case of Tianjin Plastics. Pat Johnson‚ project finance analyst for Maple Energy (U.S.-based international power plant developer)‚ has to make a recommendation regarding the financial viability of the Tianjin Plastics power plant project in China. The recommendation would require a final evaluation of
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Questions and Problems Page 1 of 3 Corporate Finance eBook 9/e Content Chapter8: Interest Rates and Bond Valuation Questions and Problems 1. Valuing Bonds What is the price of a 10-year‚ zero coupon bond paying $1‚000 at maturity if the YTM is: BASIC (Questions 1– 12) a. 5 percent? b. 10 percent? c. 15 percent? 2. Valuing Bonds Microhard has issued a bond with the following characteristics: Par: $1‚000 Time to maturity: 25 years Coupon rate: 7 percent Semiannual payments Calculate the price of
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/MiddSuppose that in the coming year‚ you expect Exxon-Mobil stick to have a volatility of 42% and a beta of 0.9‚ and Merck ’s stock to have a volatility of 24% and a beta of 1.1. The risk free interest rate is 4% and the markets expected return is 12%. The cost of capital for a project with the same beta as Merck ’s stock is closest to: . | d. 12.8% | E[R] = Rf + Beta × Risk Premium = .04 + 1.1 × (.12 - .04) = .128 | Which stock has the highest total risk? | c. Exxon-Mobil since it has
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price $40 Market value of firm $400‚000 Number of shares 10‚000 Earnings per share $4 Book net worth $500‚000 Return on investment 8% Pisa has not performed spectacularly to date. However‚ it wishes to issue new shares to obtain $80‚000 to finance expansion into a promising market. Pisa’s financial advisers think a stock issue is a poor choice because‚ among other reasons‚ “sale of stock at a price below book value per share can only depress the stock price and decrease shareholders’ wealth
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Multiple Choice - Terminology/Concept 1. Which statement concerning retailing is correct? a. Retailing activities cannot be performed by wholesalers. b. It is the last stage in the distribution process. c. All retail activities are store-based. d. A lawyer purchasing stationery for use in his/her office is an example of retailing. (b; Challenging; p. 4) 2. According to the Department of Commerce‚ annual U.S. retail store sales exceed _____. a. $200 billion b. $1 trillion c. $2 trillion
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the firm and its investors wealthier. This point is one of the central and most powerful ideas in finance‚ which we call the Valuation Principle: The value of an asset to the firm or its investors is determined by its competitive market price. The benefits and costs of a decision should be evaluated using these ©2011 Pearson Education 20 Berk/DeMarzo • Corporate Finance‚ Second Edition market prices‚ and when
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liability‚ and list firm types that are subject to each. 3. Describe taxation consequences for C and S corporate forms. Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 1-3 Learning Objectives (cont’d) 4. Discuss the division of corporate ownership into shares of stock; evaluate the implications of that division for corporate decision making. 5. Explain how corporate bankruptcy can be viewed as a change in firm ownership. 6. Compare and contrast characteristics of shares
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COMPANY: TRAPHACO JOIN STOCK COMPANY (TRA) DOMESCO MEDICAL IMPORT-EXPORT JOIN STOCK COMPANY (DMC) HAUGIANG PHARMACEUTICAL JOIN STOCK COMPANY (DHG) IMEXPHARM PHARMACEUTICAL JOIN STOCK COMPANY (IMP) gROUP PHARMACEUTICAL: truong quang khoa huynh minh tri Cao huynh ngoc khanh huynh le phuong thao ngo thi ngoc anh to ha cat anh Contents 1 INTRODUCTION 1.1 INDUSTRIAL OVERVIEW Pharmaceutical industry is an important sector in the national economy‚ the production of functional
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Sample Test Problems 9.1 Which type of secondary market provides the most efficient market for securities? 9.2 Is preferred stock classified as debt or equity? 9.3 Burnes‚ Inc. is a mature firm that is growing at a constant rate of 5.5 percent per year. The firm’s last dividend was $1.50. If the required rate of return is 12 percent‚ what is the market value of this stock assuming dividend growth equals the growth rate of the firm? 9.4 Abacus Corp. will pay dividends of $2.25‚ $2.95 and $3.15
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Review for Exam 3 Instructions: Please read carefully • • The exam will have 25 multiple choice questions and 5 work problems. Questions in the multiple choice section will be either concept or calculation questions. The calculation questions will be similar to those in the homework and review. However‚ the concept questions will be related to any topic we have covered in the class. The concept questions in the review are only some sample questions. You should NOT study only topics in the review
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